Even after the Supreme Court of the United States reduced some of President Donald Trump’s tariffs, Americans won’t get off that easily. The Tax Foundation found that the remaining tariffs will still cost the average U.S. household about $400 a year in 2026. While that is less than the estimated $1,000 from 2025, it is not a zero-dollar fairy tale that the administration has been speaking of.
In a 6-3 decision, the high court ruled that Trump overstepped by imposing “reciprocal” tariffs under the International Emergency Economic Powers Act (IEEPA). Chief Justice John Roberts held that the executive cannot unilaterally tax.
The ruling has thus been a major check on one of Trump’s signature second-term policies. Tariffs have been the backbone of his economic agenda, which he says can revive American manufacturing and reduce the trade deficit.
Economics 101
It’s not rocket science
Trumps tarriffs. This scares economists the mosthttps://t.co/XeI9c8H2pK pic.twitter.com/XuBgF1YoKD
— Maura 🍀🇺🇸🇮🇪🇲🇽 🌛🌝🌜💙 (@maura_resister) September 8, 2024
However, the ruling didn’t help entirely. The administration is invoking Section 122 of the 1974 Trade Act to impose a temporary 15 percent global tariff on most imports. That will still keep import taxes in place and regular consumers on the hook.
The Tax Foundation explains that this is how the administration will raise prices and reduce the availability of goods and services. The Federal Reserve also found that about 90 percent of the cost of increased tariffs in 2025 was borne by U.S. companies and consumers. Despite repeated claims from Trump and other Republicans that foreign nations “pay” the tariffs, exporters kept their prices steady.
The average tariff rate on imported goods increased from 2.6 percent to 13 percent during Trump’s second term and affected products from Mexico, China, Canada and the European Union. Yet, this court ruling hasn’t reset rates to pre-tariff levels.
So, while the annual household burden fell from $1,000 to $400, everyday goods aren’t cheaper.
Trump wants to blackmail NATO countries.
Trump called himself the “Tariff King” and declared he could impose tariffs on countries that oppose the US position on Greenland.
We need Greenland for our national security. So I can do this.
Who elected this idiot? Idiots. pic.twitter.com/k2E12FjyvS
— Jürgen Nauditt 🇩🇪🇺🇦 (@jurgen_nauditt) January 16, 2026
According to Bloomberg, China, India and Brazil (previously under emergency levies) now have lower effective rates. Morgan Stanley estimates Asia’s average tariff rate will drop to 17 percent from 20 percent, with Chinese goods going from 32 percent to 24 percent on average. Meanwhile, nations that had negotiated lower 10 percent deals (like the United Kingdom and Australia) could now face the 15 percent levy.
Thus, the dollar and S&P 500 futures dipped, while some Chinese stocks rallied.
The court opened the door to potential refunds for unlawful tariffs; the United States has already collected at least $130 billion via IEEPA levies. Trump suggested that any such refunds would require long-drawn legal battles. The United States Chamber of Commerce and the National Retail Federation are pushing for quick reimbursements as they do not want the average American to incur costs.
